Baraban Corporation has provided the following data for its most recent year of

Question

Baraban Corporation has provided the following data for its most recent year of operation Selling price per unit $47 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $10 6 Direct labor Variable manufacturing overhead Fixed manufacturing overhead per yean $130,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year 5 $ 63,000 Units in beginning inventory Units produced during the year10,000 Units sold during the year Units in ending inventory 9,000 1,000 7 of 25 Next > Prav S,

Explanation / Answer

Selling and administrative expenses (both variable and fixed) are not relevant for the computation of unit product cost.

Answer is: C. $34

Computation of Unit Product Cost Absorption Costing Direct Meterial $                                  10 Direct Labour $                                    6 Variable Manufactoring Overhead $                                    5 Fixed Manufactoring Overhead ($130,000/10,000) $                                  13 Unit Product Cost $                                  34

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